DTN Early Word Livestock Comments      06/27 06:18
   Little Reaction to Hogs and Pigs Report Expected

   The cash cattle trade was very limited and took place late on Thursday after
the markets closed. Live cattle futures showed little strength due to price
uncertainty. Hogs closed lower ahead of the Hogs and Pigs report, as traders
positioned themselves. Both cash and cutouts were lower.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed         Live Equiv: $286.90 +$0.79*

   Hogs: Higher          Futures: Mixed         Lean Equiv: $125.51 -$2.16**

   *Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The index has been updated to depict recent
changes in live cattle weights and grading percentages.)

   ** based on formula estimating lean hog equivalent of gross packer revenue.

GENERAL COMMENTS:

   The anticipation was for further cash weakness this week, but no business
was done before the market closed Thursday. Later in the day, some light cash
trade took place at $3.00 to $4.00 lower for both live and dressed cattle. If
this is what will take place, it will be the second week of lower cash prices.
This may put further pressure on futures. Boxed beef prices were higher, with
choice up $0.11 and select up $3.45. This was the first time this week that
both categories were higher. The June live cattle contract will go off the
board on Monday and may see little movement ahead of the close. Traders remain
supportive of feeder cattle even though buyers are showing some resistance to
high prices at auctions.